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Mobile banking technology has come a long way since its inception. Mobile banking refers to banking services accessible on consumers’ mobile handsets. These services could range from the ability to check account balances and check transactions to blocking stolen cards.
For the most part, mobile banking is considered safer than Internet banking, since malicious code and hackers have not targeted cell phones in the ways they have targeted computers. This may change in the near future. However, even with today’s mobile banking technology, you should be aware of some critical aspects that pertain to the security of using mobile banking services.
Handset Security
Since you carry your cell phone with you when you are out and about, there is a high risk of you losing your phone, or having it stolen. Therefore, if you are a mobile banking user, it is important that you have a handset that can be locked with a password or PIN. Check that your bank offers an application on your phone that would require the user to enter a login or password to access any bank account information. Some banks also have an agreement with the service provider to authenticate the physical device to the network or service before mobile banking services are accessed.
To increase security, you can take a few simple steps such as not storing your login and password information on your phone and reporting cell phone loss and theft as soon as possible.
Regular Updates
Certain mobile banking solutions may require you to install customized software on your phone. As with any other operating system, these proprietary mobile banking software packages require updates and upgrades. It is important that the bank alerts you to any critical upgrades and provide a means to download the latest mobile banking software easily on your phone. In certain cases, upgrades can be sent directly to your handset, which is a useful feature to ensure maximum security at all times.
Even if your bank does not require proprietary software, you should ensure that your phone has updated firmware and is equipped with suitable virus protection software for increased security.
Encryption and Network Reliability
Also important are the security and integrity of your authentication and account information that is potentially at risk while being transmitted over wireless carrier networks. Most networks now encrypt all data being exchanged between the bank and the user’s wireless device. In addition, present authentication methods do not require you or the bank to transmit your account information over the mobile banking session at any time. Instead, you typically need to pre-register your cell phone number and possibly your handset with the bank to utilize mobile banking. Authentication depends on a combination of your cell phone number and password.
For the most part, mobile banking is considered safer than Internet banking, since malicious code and hackers have not targeted cell phones in the ways they have targeted computers. This may change in the near future. However, even with today’s mobile banking technology, you should be aware of some critical aspects that pertain to the security of using mobile banking services.
Handset Security
Since you carry your cell phone with you when you are out and about, there is a high risk of you losing your phone, or having it stolen. Therefore, if you are a mobile banking user, it is important that you have a handset that can be locked with a password or PIN. Check that your bank offers an application on your phone that would require the user to enter a login or password to access any bank account information. Some banks also have an agreement with the service provider to authenticate the physical device to the network or service before mobile banking services are accessed.
To increase security, you can take a few simple steps such as not storing your login and password information on your phone and reporting cell phone loss and theft as soon as possible.
Regular Updates
Certain mobile banking solutions may require you to install customized software on your phone. As with any other operating system, these proprietary mobile banking software packages require updates and upgrades. It is important that the bank alerts you to any critical upgrades and provide a means to download the latest mobile banking software easily on your phone. In certain cases, upgrades can be sent directly to your handset, which is a useful feature to ensure maximum security at all times.
Even if your bank does not require proprietary software, you should ensure that your phone has updated firmware and is equipped with suitable virus protection software for increased security.
Encryption and Network Reliability
Also important are the security and integrity of your authentication and account information that is potentially at risk while being transmitted over wireless carrier networks. Most networks now encrypt all data being exchanged between the bank and the user’s wireless device. In addition, present authentication methods do not require you or the bank to transmit your account information over the mobile banking session at any time. Instead, you typically need to pre-register your cell phone number and possibly your handset with the bank to utilize mobile banking. Authentication depends on a combination of your cell phone number and password.
